MidOcean Energy, an EIG-managed LNG company, has entered into a definitive agreement to acquire an additional 15% interest in Peru LNG from Hunt Oil Company.
This transaction, upon completion, will increase MidOcean’s stake in the South American liquified natural gas (LNG) export project from 20% to 35%.
The financial terms of the transaction were not disclosed.
The deal saw Saudi energy giant Aramco taking a central role, conducting critical technical and commercial assessments and engaging with key stakeholders to secure approval.
Aramco will fully fund the transaction, which will raise its ownership in MidOcean to 49%. The Saudi oil major first invested in MidOcean in September 2023.
Aramco’s increased investment not only bolsters MidOcean’s capabilities but also solidifies both entities’ standing in the international LNG market, granting them greater access to the only LNG export project in South America.
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By GlobalDataFollowing the acquisition, Aramco’s indirect stake in Peru LNG will amount to 17.2%.
Meanwhile, Hunt’s interest in the project will be reduced from 50% to 35%. Despite this decrease, Hunt will maintain its operator role at the facility.
The Peru LNG facility, operated by Hunt, is the sole LNG export installation in South America.
Located in Pampa Melchorita, approximately 170km south of Lima, the facility boasts a natural gas liquefaction plant with a processing capacity of 4.45 million tonnes per annum, a 408km pipeline capable of transporting 1,290 million cubic feet per day, two storage tanks each with a 130,000m³ capacity, a marine terminal extending 1.4km, and a truck loading facility with a throughput potential of up to 19.2 million cubic feet per day.
MidOcean CEO De la Rey Venter said: “We are pleased to increase our stake in PLNG, a strategic asset that aligns with MidOcean’s vision of creating a global, diversified, and resilient LNG portfolio.
“Our belief in the long-term fundamentals of the LNG market and in the strength of PLNG’s unique position as the only LNG export facility in South America remains steadfast.”
Hunt CEO Mark Gunnin said: “We are focused on positioning the PLNG project for the future, and the opportunity to bring in MidOcean as a partner was a great strategic fit to make that happen.”
In addition to EIG and Aramco, Japan’s Mitsubishi Corporation also holds a stake in MidOcean.
